World demand for nutraceutical ingredients is forecast to increase 6.4% annually to $28.8 billion in 2017. The best growth prospects will exist for substances with clinically supported health benefits and broad applications in foods, beverages, dietary supplements, and adult and pediatric nutritional preparations. Included in this group are soy proteins; oat bran, psyllium and soy fibers; cranberry and garlic extracts; calcium and zinc minerals; folic acid; and vitamins A and D. These and other trends are presented in World Nutraceutical Ingredients, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Nutrients will remain the top selling group of nutraceutical ingredients worldwide. Fibers will post the fastest demand gains as food and beverage makers throughout the world introduce new high value-added nutritional preparations. Naturally derived herbal and botanical extracts and animal- and marine-based derivatives will remain the second largest selling group of nutraceutical ingredients worldwide. Analyst Bill Martineau forecasts, “Glucosamine will continue to lead demand, reflecting clinically proven pain control benefits and expanding use in dietary supplements and nutritional therapies.”
Brazil, China, India, Mexico and Turkey will be among the fastest growing consumers and producers of nutraceutical ingredients worldwide. Mr. Martineau stated, “Increasing economic prosperity will enable these countries to expand and diversify their food and beverage processing, and pharmaceutical industries.” In 2017, China alone will absorb almost 14 percent of the value of global nutraceutical ingredient demand and will account for nearly 19 percent of the value of related world shipments. The United States will remain the world leader, making up 20 percent of global demand and 21 percent of shipments.
The supply of and demand for nutraceutical ingredients in the United States, Western Europe, and other developed economies will increase more slowly than will developing regions due to maturing markets and recurring safety controversies involving various compounds. Nonetheless, food, beverage, and pharmaceutical companies in these economies will continue to pursue opportunities in conventional and specialty nutritional products and natural medicines. As a result, they will remain major customers for nutraceutical ingredients.
World Nutraceutical Ingredients (published 11/2013, 610 pages) is available for $6300 from The Freedonia Group, Inc.
